Top 5 Long-Term Stock Picks for 2025: 13-60% Returns
Brokerages remain optimistic about select stocks across sectors for 2025, highlighting strong growth potential driven by cyclical recovery and structural growth stories. Leading research firms have identified five stocks that could deliver impressive returns between 13% and 60% for long-term investors.
Zen Technologies – 60% Upside Potential
Choice Institutional Equities maintains a Buy rating on Zen Technologies with a target price of Rs 2,150, implying a 60% upside from the current market price of Rs 1,339. Despite a muted Q2 FY26 performance with revenue declining 28.2% year-on-year, the brokerage remains bullish on the defence and aerospace company’s long-term prospects.
The company’s fundamentals remain strong with a debt-free balance sheet, robust EBITDA margins, and over Rs 1,100 crore in net cash. Management has reiterated confidence that delayed simulator and anti-drone orders worth approximately Rs 650 crore will materialize in H2 FY26. The company maintains a cumulative execution guidance of Rs 6,000 crore by FY28.
Tata Steel – 19% Return Potential
Motilal Oswal has upgraded Tata Steel from Neutral to Buy with a target price of Rs 210, indicating a 19% upside from the current level of Rs 176. The company is aggressively expanding its capacity in India from 26.5 mtpa in FY25 to 40 mtpa by FY30 to capitalize on rising domestic demand.
Key expansion projects include a 5 mtpa integrated capacity at Kalinganagar, scaling NINL from 1 mtpa to 4.5 mtpa, and a 0.75 mtpa electric arc furnace at Ludhiana by FY27. At current market price, Tata Steel is trading at 6.8x EV/EBITDA and 1.9x FY27E P/B, making it attractive for long-term investors.
Supreme Industries – 21% Growth Opportunity
Motilal Oswal maintains a Buy rating on Supreme Industries with a target price of Rs 4,850, suggesting a 21% upside from its current price of Rs 4,000. Despite muted Q2 performance due to volatile PVC prices and weak demand from extended monsoon, the company’s long-term outlook remains positive.
Management has maintained overall volume growth guidance of 12-14% YoY for FY26, driven by positive demand from housing, plumbing, and agriculture segments. Pipes volume grew approximately 17% YoY in Q2, with piping volume growth guidance maintained at 15-17% for FY26. The brokerage values the stock at 45x FY27E EPS.
Strong Fundamentals Drive Optimism
These stock recommendations reflect brokerage confidence in companies with solid fundamentals, strong order books, and clear growth trajectories. Zen Technologies’ robust defence sector positioning, Tata Steel’s capacity expansion plans, and Supreme Industries’ volume growth strategy make them attractive picks for 2025.
The stocks represent a mix of sectors including defence, metals, and building materials, offering diversification opportunities for long-term portfolios. While near-term headwinds exist, structural growth drivers and improving execution visibility support the positive long-term outlook.
Investment Considerations
Investors should note that these are brokerage recommendations based on fundamental analysis and future earnings expectations. Market conditions, global economic factors, and company-specific developments can impact actual returns. Long-term investors with a 1-2 year horizon may find these stocks attractive at current valuations.
Disclaimer: This article is for educational purposes only and should not be considered as investment advice. Stock market investments are subject to market risks. Investors should conduct their own research or consult a certified financial advisor before making any investment decisions. Past performance is not indicative of future results.